𝐀 𝐉𝐚𝐦𝐚𝐢𝐜𝐚 𝐏𝐨𝐨𝐫 𝐍𝐨 𝐌𝐨𝐫𝐞
𝐛𝐲 𝐌𝐢𝐜𝐡𝐚𝐞𝐥 𝐈 𝐏𝐡𝐢𝐥𝐥𝐢𝐩𝐬
(𝘢𝘷𝘢𝘪𝘭𝘢𝘣𝘭𝘦 𝘢𝘵 𝘢𝘮𝘢𝘻𝘰𝘯.𝘤𝘰𝘮)
𝐂𝐡𝐚𝐩𝐭𝐞𝐫 𝟔
𝐏𝐫𝐨𝐩𝐨𝐬𝐞𝐝 𝐏𝐖𝐏 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬
( These proposals are from the originals published in Hot Calaloo in 1998-99)
FINSAC, PWP and Port Antonio
(from Hot Calaloo, V 7#4, Dec 1998)
The Jamaica Government formed the FINSAC corporation in order to rescue not government but private institutions such as banks and insurance companies, the pillars of private enterprise. It monitors these institutions, determines their financial health, rescue them from bankruptcy, put them back in a healthy financial condition, establishes rules of operation, and then sells them back to some other private sector company or investor. In order to accomplish so complex an operation it hires its expertise usually at great expense. It is in the red, running up huge debts, but economic catastrophe and the loss of public confidence have been averted. So, despite the price tag, it has to be considered a success.
There are lots of similarities with the FINSAC operation and the Partnership With People (PWP), the concept proposed by Hot Calaloo. PWP, an autonomous government corporation, undertakes to run private enterprise operation with private sector partners. PWP hires expertise to run the operation. It investigates the operation for profitability potential. It establishes the rules of operation. It monitors it for efficiency and professionalism. PWP is designed to make a profit, not a rescue operation, like FINSAC, so would select only operations that have profit potential. A reader raised a good question as to whether PWP would compete and displace some small struggling entrepreneur. It might, but so too would some big multinational chain operation if it could make a profit in so doing. At least PWP would consider this impact, ways to minimize this, and even invite the local entrepreneur to be a partner.
On my recent trip to Port Antonio, it was precisely this struggling entrepeneur that I saw many signs of how PWP could help.Here are three examples.
Hotel
I had lunch in this hotel high in the mountains of Port Antonio. It had an impressive spectacular view, the best in the area by far. But, that was all it had. Once a mecca in its heyday many years ago, it was now antiquated. The rooms were deplorable and I was told that it seldom had any guests. How it stayed afloat was a mystery. Maids, attendants, cooks, waiters and the rest of the hotel staff would lose their jobs if the hotel closes. It would be a tragedy. I am sure PWP could save it. They could remodel, advertising blitz, establish shuttle to the beach, aggressive campaign to make it up to date and competitive and restore it to its former glory. At the least, PWP would obtain the expertise to make it financially sound. Or, shall we wait for Holiday Inn or some other financial multinational corporation, or bankruptcy?
Horseback Riding
I encountered a local resident struggling to make a go of horseback riding for tourists. This would be a real easy project for PWP. All it would take would be providing a cell phone, riding helmets, good advertising in the hotels, and some minimal training in running a business in a professional manner. Some additional horses would be good to accomodate the increase in business that would result.Reach Falls Shop
I went to the beautiful Reach Falls. At the entrance I bought some delicious shrimp tea (soup) loaded with big tasty crayfish. It was dispensed from a ramshackle stall that many a tourist would probably avoid. There were other local vendors selling ital tonics etc. A nice inexpensive attractive even shed-like building plus some PWP business counseling would be a tremendous boost to the sales of these vendors.
In all of these ventures, PWP would invite these people to be partners. It would be voluntary. PWP could actually investigate the feasibility in advance and propose to accept payment for their services as a percentage of the increase in net profits above what the present owners are making now. PWP could easily become a pro-active extension of FINSAC.
Fixing the Markets the PWP Way
(from Hot Calaloo, V 7#4, Dec 1998)
"Carry me ackee
go ah Linstead Market
Not a quattie wut sell...."
"Come we go down
Come we go down
Come we go down
Ah Solas market.."
Market day in Jamaica is a big event in the lives of many, especially in the countryside. But, reports indicate the markets are deteriorating . In Mandeville vendors are refusing to use the market there because it is so filthy, choosing to occupy sidewalks instead. Here, they become targets of police who need to keep the sidewalks clear. The same type of thing is true for even crafts market. Recently Ocho Rios crafts market vendors staged a series of demonstrations because their potential customers, tourists were avoiding these markets like the plague. And why not? These craft markets are
· unattractive
· often dirty
· contain a glut of the same products
· filled with desperate vendors who often resort to techniques just short of harassment to sell their products
The PWP Solution
First of all, the markets should be run on professional market principles. The poor vendors know nothing about this so the Government will have to both establish and teach them. There is a desperate need and only Government can fill it. In the Partnership with People (PWP) way, Government would appoint a market CEO, whose salary would be dependent on the financial success of the market. The market would be run on business and marketing principles like shopping malls in the US.
The CEO would run the market with input from a board of directors. This board of directors would be comprised of the vendors, or selected or elected members from and representing all the vendors. To begin with toilet facilities would be stocked and maintained by an attendant. The CEO and board would constantly seek to:
- Establish and maintain cleanliness
- provide good security
- increase patronage
- minimize harassment
- improve quality
- seek solutions to any other problems that arises.
Vendors would probably have to pay more but not be restricted to cash only, but maybe in percentage of sales, goods, or their labour to maintain the market. New rules would define each vending site location and area. Vendors would not only have additional responsibility in keeping their vending site and a specified adjacent area clean, but would have to participate in other aspects of the running of the market, like serving on the board.
Markets have to be saved and the PWP way (described only briefly) can transform these awful dirty warehouses into attractive pleasant retail outlets to which shoppers will want to come. Increased sales will result and increased profit as well as the development of business skills for the vendors. Besides, just as shopping malls make a profit, the Government too should also make a profit out of this partnership, which would be a nice bonus.
Making Petrojam Flourish by PWP
(from Hot Calaloo, V 7#5, Jan 1999)
So far the Government of Jamaica has been unable to divest itself of its petroleum refinery. This might be a good thing as it provides an opportunity for a perfect PWP, Partnership With People, project
Partnership With People (PWP) is Hot Calaloo’s proposed autonomous government corporation responsible for seeking out, establishing, obtaining partners for, and maintaining franchise operations for a wide variety of goods and services.
Petrojam refinery produces all gasolene sold in Jamaica, be it Exon, Shell or Texaco. Instead this proposal would create PWP’s Petrojam gas stations. But these would not be just gas stations. Just as the new proposed postal centers would incorporate an array of new services, so also would the new Petrojam stations. They would be modeled after the gas station-convenience stores now quite popular here in the USA. So these gas stations would become little retail centers of goods and services in which they would :
· Sell gas
· Sell selected auto supplies
· Sell groceries
· Sell snacks such as patties, sodas etc. (cold supper shop)
· Do auto repairs
This Petrojam station would be set up as a PWP franchise. PWP would be responsible for obtaining management expertise to ensure high quality. They would be responsible for :
- staff training
- service
- competence
- cleanliness
- professionalism
- advertising
- bookkeeping and accounting
- policies
- security
Partners or Franchisees
Each Petrojam station would operate as a co-operative and may have as many as four franchisees.
- One for selling gas and auto supplies
- One for auto repair shop
- One for selling groceries
- One for selling snacks
PWP would try to get franchisees already operating similar enterprises in the area. Every attempt would be made not to compete and displace these existing entrepreneurs, but to incorporate them in a more professional and of course profitable venture.
This will be a shining glistening place with courteous well-trained efficient motivated staff. It will be a hub of activity.
I am convinced PWP is not just a way out of poverty for Jamaica and the rest of the Caribbean, but a blueprint for prosperity, and a means to recapture our economic sovereignty
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